William Hill Braced For Shareholder Pay Revolt

After the resignation of Aviva boss Andrew Moss following shareholders voting against proposed pay increases, fears are increasing that a similar outcome might affect bookmakers William Hill in what is being dubbed the ‘shareholders spring’.

The bookmaker’s shareholders are being asked to vote on a £1.2m retention bonus and an 8.3% pay rise for chief executive Ralph Topping at its AGM later on Tuesday.

However the Association of British Insurers, whose members control around 15% of the stock market, have issued an "amber top" warning on the bookmaker's remuneration report. The Pensions and Investment Research Consultants (Pirc) have advised shareholders to abstain on the remuneration vote.

Investors are angry at the £1.2m retention bonus in particular because it is not linked to performance.

Calling for calm the company insists the reward is to maintain stability: "We do not fall into the category of reward for failure," chairman Gareth Davis said, pointing out that William Hill's share price has risen almost 30% in the past year and its dividend was up 16% in 2011.

He added: "I understand the whole subject of executive remuneration is a hot topic. I just hope that as we get through the reporting season the debate becomes a little more balanced."

The company faced a similar rebellion a year ago, when 38% of shareholders failed to support the remuneration report at the 2011 AGM, which saw Topping's package jump 56% to £1.65m in pay, benefits and bonuses.

(H)